Cipd performance management PDF

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Title: Could do better? Assessing what works in performance management

Academic Citation: CIPD (2016) “Could do Better? Assessing what Works in Performance Management.” Research Report, December. Wimbledon: CIPD

Summary of Article:  

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Discusses two main points – goal setting and performance appraisals Goal Setting o Like prescriptive medication – works but easy to misapply and get wrong  Challenging goals are useful motivators – can end up detracting employees from their actual tasks – does not develop navigating interrelated steps or stages, adapting to unfamiliar cues, developing new skills or making decisions based on data analysis  Focus goals based on learning and development of employees o Its linked to appraisals  Performance is improved via monitoring and feedback  Performance management is a continuous process rather than a one off that is revisited Performance Management o Feedback works well to improve performance but is not guaranteed to work effectively  There is no universal template – need to account for person, job type and type of firm o Appraise the Appraisal  What is important is employee reaction to appraisal  How fair and useful they are deemed to be – if they feel it is not useful or unfair – appraisal process and manager needs work o Systematic assessment of employees requires managers to use standardized measures and ratings  There are many potential sources of bias within  Idiosyncratic bias from managers and raters o The purpose of the appraisal  Managers can conduct appraisals differently depending if they are used for admin purposes or development/training purposes  Should not try to use one type for both measures – separate them

Critical Factors of Goal Setting 

Practical factors o Set challenging, clear achievable goals

o o o o

Set outcome goals that are less specific to encourage employee self-efficacy and learning behavior Allow managers to set employees meaningful targets Focus on employees that have a learning mindset rather than a performance one and develop it Support employees to form ‘implementation goals’, stating how, where and when they will act and to develop strategies to deal with potential setbacks

Critical Factors in Performance Appraisals     

Rely on manager evaluation rather than self-appraisals Avoid forced/guided distribution for performance rating – generates negative feedback o Use fewer rather than more categories when assessing Use strength based approach that focuses on positive aspects Ensure employees are involved in appraisal process Check to see if employees find the process fair

Critical Factors to ensure robust ratings 

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Bias from rater centric errors o Managers can have fixed beliefs on employees o Higher power managers give less accurate ratings o Manager ratings affect their ability to give others accurate ratings o If the employee was hired by a manager affects the ratings they give o Introverted managers underrate extroverted employees Bias from ratee centric error o Those that display more organizational citizenship obtain higher ratings o Self-promotion to managers can obtain higher ratings Bias from system-centric errors o Being unclear about the purpose of the appraisal o Combining measures together that do not work well o Need to hold management accountable for their evaluations

Main Headings and Points Made:             

Contents Foreword 2 Executive summary 3 Introduction 5 1 Performance management revolution? 7 2 Goal setting and appraisals: what’s supposed to happen? 10 3 Do targets and appraisals generally work? 14 4 What works in goal setting (and what doesn’t)? 16 5 What works in performance appraisals (and what doesn’t)? 22 6 Ratings bias and what to do about it 27 Conclusion 35 Appendix: methodology 38 References 40

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